An FDA advisory panel voted to allow Biogen Idec(BIIB ) and Elan (ELN ) to return their multiple sclerosis drug Tysabri to market, recalled in Feb. '05 on concerns of neurological side effects. The FDA will make the final decision, but usually follows the panel's recommendations. When the drug was pulled last year, Elan's shares plunged 70% and Biogen's stock tumbled 43%. Trading was halted Wed. on both stocks until just before closing. Elan surged 24.5% to 15.81 while Biogen rose 7.5% to 49.

The FTC gave the botox maker the OK to buy cosmetic surgery device maker Inamed (IMDC ) for $3.2 bil. Allergan (AGN ) had to extend its offer as it waited for FTC clearance. The company's offering $84 in cash, or 0.8498 of a share of its stock, for each outstanding share of Inamed. Allergan said 45% of Inamed shares will be exchanged for cash and 55% will get Allergan stock. Allergan climbed 4% to 114.63 while Inamed rose 2.5% to 91.55.

Bristol-Myers Squibb (BMY ) will build a $600 mil plant in the U.S. to develop biotech products. The company has not chosen a site. Construction is set to begin later this year and will take five years to complete. Shares rose 1% to 22.83.

Army officials said the military will likely reduce its body armor purchases by one-third to 20,000 units a month this year, slowing growth in a critical market for Ceradyne. (CRDN ) The reduction might begin as soon as midyear, affecting 2007 earnings. Ceradyne shares tumbled 8% to 52.76, its third straight daily decline. Ceradyne sought to calm investors by affirming its full-year EPS guidance of $3 to $3.20 vs. views of $3.07.

The largest U.S. oil and petrochemical company will raise spending on operations 11%, or about $2 bil, to $20 bil annually. The investments in new drilling and added refinery capacity will add 2 mil barrels a day to its oil output potential by 2015, a 50% rise over last year's production level. Exxon,(XOM ) which had $33 bil in cash at the end of last year, has been under pressure to boost drilling and expand facilities or else return the money to investors by buying back shares or raising cash dividends. Shares fell less than 1% to 59.71.

The oil and gas producer said Q4 earnings fell by more than two-thirds to 19 cents a share, well below views of 36 cents. Revenue tumbled 25% to $52.3 mil, missing analysts' target of $53.3 mil. The company said hurricane damage caused oil production to drop 76% and gas output to decline 49.4%. Sharesof Remington (REM )edged up 5 cents to 41.85.

Large U.S. investment banks are expected to post a record 12% increase in revenue in Q1 on the strength of increased M&A, bond and trading activity. Goldman Sachs, (GS ) Lehman Bros. (LEH ) , Bear Stearns (BSC ) and Morgan Stanley (MS ) - which begin releasing results next week - are seen continuing a streak of strong earnings results. The 4 banks' underwriting and M&A fees increased 30%. And quarterly M&A volumes rose 52% to $737 bil, the best in 4 years, according to research firm Dealogic.

Allstate, (ALL ) the home and auto insurer, will sell its variable annuity business to Prudential Financial (PRU ) for $560 mil. Allstate rose 1% to 54.35. Prudential edged up 0.5% to 75.76.

OptionsXpress, (OXPS ) an Internet options and stock brokerage, said daily average revenue trades jumped 64% in Feb. to 29,200. Net new accounts equaled 5,500 for a total of 172,600, a 56% increase. Shares fell 5% to 28.62.

Tech Data, (TECD ) a computer products retailer, said Q4 earnings rose 3% to 72 cents a share ex items, 5 cents over views. Revenue dipped slightly to $5.53 bil. It cut Q1 guidance, sending shares down 11% to 36.42.

Microsoft (MSFT ) launched a new version of its search engine, designed to more effectively compete against Google (GOOG ) and Yahoo. Shares rose 0.5% to 27.25.

Siemens (SI ) and Yahoo (YHOO ) unveiled a new cordless phone designed to work with Yahoo's Internet calling system. Siemens dipped slightly; Yahoo fell 1.5%.

The world's No. 2 steel maker finalized its $4.85 bil takeover of Canadian firm Dofasco, raising the potential buyout costs for Mittal Steel,(MT ) which launched a $22.8 bil hostile bid for Arcelor in Jan. Analysts contend Arcelor paid too much for Dofasco in a bid to fend off Mittal. Arcelor is pursuing other deals as well. Mittal rose 1% to 33.81.

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